Market Commentary-January 10

Following a mildly unsure start, U.S. indices gradually settled in for a positive trading day. The market move was pending on the FOMC committee minutes, however having heard from Federal Reserve officials early on, there wasn't that much to challenge the markets upon its release.

The main topic of discussion for numerous on Wednesday has been the minus 0.6% loss of the U.S. Dollar Index. Most critical EM (emerging market) currencies had taken the opportunity run contributing to many Eastern European currency pairs to gain plus 0.8%, while core Euro Dollar, Japanese Yen, and British Pound recovered with plus 0.7% on average.  

Stock market appreciated the idea of Federal Reserve easing its stance; however, the forwards already have priced actually zero moves for 2019. This has been perhaps pricing a touch too simplistic approach, however, taking into consideration the increased demand for U.S. Treasury 10-year auction yesterday, that does indeed seem to be a consensus. 

Towards the end of the trading session, the American market found recovery continue for West Texas Intermediate crude oil, bringing the rally from the December 2018 low levels to more than 20%. Nasdaq index led again at plus 0.87% with S&P500 and DJI gaining plus 0.4%.

Much more positivity in Asia-Pacific on Wednesday as hopes build up following the U.S. - China trade discussions enter their 3rd day. Yesterday, it was the turn of the H.K. Hang Seng to lead the rest with an impressive positive 2.27% gain, while core Shanghai index returned plus 0.7%. 

Technology stocks made it easier for the H.K. Hang Seng index rally on Wednesday, but additionally communicate of policy support moved sentiment.

The Brexit timetable now is in great shock mode following Theresa May finds out the government has just 72 hours to return with the replacement plan if she manages to lose the January 15th vote! 

News reports emerged far too late in the trading session to affect FTSE index positive 0.66% gain; however, it did find a way to return Sterling from a 1.28 handle back in the middle 1.27 range. The majority of primary indices German DAX, French CAC, moved lower into the marketplace close but nonetheless managed a plus 0.85% return.

The break-out in the Euro Dollar had been probably the most significant move in Forex markets on Wednesday, as the most-traded currency pair passed significant resistance level 1.15 handle on account of the Federal Reserve's dovish validation and the prolonged risk-on rally.

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